Central Gold Trust Opens Its Entire $800 Million Base Shelf Prospectus in a Non-Dilutive Offering

Stefan Spicer is opening up his Central Gold Trust (GTU) for expansion in a very classy way, making it non-dilutive of NAV so as to not penalize the existing unit holders.

Well done indeed. An excellent response to surging market demand. The Spicers once again show the way to respond to their customers.

It will be interesting to see how quickly this offering sells. Since the Central Gold Trust holds its bullion in a strict allocation it represents a potentially large physical offtake in a tight bullion market as the move to hard assets continues.

And as an aside, it is so nice to be able to trade Canadian securities on the American exchanges. Anyone who trades the Canadian junior miners on the 'pink sheets' is all too familiar with the spread games and bid dodging the market makers are playing these days.

For Immediate Release toCanada News Wire and U.S. Disclosure Circuit
TSX SYMBOLS: GTU.UN (Cdn. $) and GTU.U (U.S. $)
NYSE AMEX EQUITIES SYMBOL: GTU (U.S. $)

CENTRAL GOLDTRUST ANNOUNCES PROPOSED OFFERING

TORONTO, Ontario (June 15, 2010) - Central GoldTrust of Ancaster, Ontario announced today that it plans to offer Units of Central GoldTrust to the public in Canada (except Québec) and in the United States under its existing U.S.$800,000,000 base shelf prospectus dated June 8, 2009 and filed with the securities commissions in each of the provinces and territories of Canada, except Québec, and under the multijurisdictional disclosuresystem in the United States pursuant to a proposed underwritten offering by CIBC.

Central GoldTrust will only proceed with the offering if it is non-dilutive to the net asset value of the Units owned by the existing Unitholders of Central GoldTrust.

The entire original amount of U.S.$800,000,000 provided for in the base shelf prospectus is available for this offering.

Substantially all of the net proceeds of the offering will be used for gold bullion purchases, in keeping with the asset allocation provisions outlined in Central GoldTrust’s Declaration of Trust and the related policies established by its Board of Trustees. Any additional capital raised by the offering is expected to assist in reducing the annual expense ratio in favour of all Unit holders of Central GoldTrust...

Read this entire news release here.

SP Daily Chart - Wall Street Pushes CBOE Out the Door to Double Digit Gains

As I cautioned, between the IPOs that were coming out, with Goldman in a key role, and the quad witch for June at the end of this week, the US financial markets would be Shenanigans Central, especially on these light volumes and happy talk from the government.

The manipulation, fraud, and corruption in the US financial markets is remarkable for its obviousness.

CBOE IPO shines, may prompt more IPOs
By The Associated Press (AP)

CBOE IPO SHINES: Shares of options exchange CBOE Holdings Inc. logged double-digit gains in their trading debut. It was a rare success in what has been a tough year for initial public offerings.

THE GOODS: CBOE's rapid growth, exclusive products and potential to be acquired made it attractive. The exchange created the VIX, or the Chicago Board Options Exchange Volatility Index. It is a closely watched gauge of market volatility also known as the "fear index."

CRACK IN MARKET: While demand for most IPOs remains tepid, CBOE's success may prompt high-profile companies in the pipeline to set a trading date.

The US dollar was severely overbought, remniscent of the eurodollar short squeeze that took it to about this level a couple of years ago. As the euro rallied today so the dollar fell. This *could* just be a normal correction in an amazingly sharp rally. I have marked the target lows for this correction if that is what it is.

Net Asset Value of Certain Precious Metal Funds and Trusts

Gold, Silver, and the Mining Index with the SP 500 for the 'Quad Witch' This Week

This is one of the big four 'quad witch' weeks for US equities, and Goldman is bring out some IPO's including the CBOE. So as previously said, we'll look for shenanigans on light volumes as the trolley dodgers try to stay out of the way of intermittent headline risks and keep that perfect trading score going.

When frauds like the US financial markets become this obvious and blatant, it is frequently a sign that they are nearing the endgame, or perhaps more properly, an implosion. But never poke a cornered skunk, you have to smoke them out.

Gold



Silver Daily Chart



Silver Weekly Chart



HUI Mining Index - Weekly Chart

Some might notice a trend on this chart. That trend would not hold up in a general stock market crash.



US Long Bond

Big Daddy looks about read to take a dump.



SP 500 Sept Futures Hourly chart



SP 500 Longer Term Cash Chart



SP 500 Correlated to Bernanke's Quantitative Easing Program



Chart Courtesy of James Turk